Credits are almost always applied against future payments rather than refunded as cash. AWS states: “We will apply any Service Credits only against future AWS Supply Chain payments otherwise due from you” . Some providers, like Oracle, similarly apply credits to future billing cycles .
If a subscription expires before the credit is used, Code42 offers a refund: “If your Incydr subscription expires without renewal, Code42 will promptly issue you a refund for any outstanding Service Credits” .
Key Considerations When Reviewing SLA Credit Terms
Not all SLA credits are created equal. Here are the critical clauses to examine.
The De Minimis Threshold
Many SLAs include a minimum credit amount. AWS will only issue a credit if the amount exceeds one dollar ($1 USD) . For smaller customers, this means minor outages may yield no compensation.
Exclusions and Downtime That Doesn’t Count
Every SLA excludes certain types of downtime from the calculation. Common exclusions include:
- Scheduled maintenance (provided the customer receives advance notice)
- Force majeure events (natural disasters, war, terrorism)
- Customer-caused issues (incorrect configurations, exceeding rate limits)
- Third-party dependencies (internet outages, DNS failures)
- Beta or preview features
AWS Deadline Cloud’s SLA explicitly excludes “downtime resulting directly or indirectly from any SLA Exclusions” . Cloudflare similarly excludes errors arising from throttling or rate-limiting .
Credit Caps and Maximum Remedies
Most SLAs cap total credits. The SSIA report notes: “The SLA must outline the maximum credit that will be available for any period” . Without a cap, a catastrophic outage could theoretically entitle a customer to a free month—but most providers limit credits to 100% of the monthly fee.
Sole and Exclusive Remedy
Perhaps the most important clause: SLA credits are typically the only remedy for service unavailability. AWS makes this explicit: “Unless otherwise provided in the Agreement, your sole and exclusive remedy for any unavailability, non-performance, or other failure by us to provide AWS Supply Chain is the receipt of a Service Credit” .
This means customers cannot sue for additional damages when the service goes down. The credit is the full extent of the provider’s liability.